TLDR:
- Venture capital investment in the travel industry hit its lowest level in a decade in 2023, but is expected to increase in 2024.
- Airbnb will display the total price before taxes of a stay in California starting July 1 to comply with new regulations.
In a recent Skift Research report, it was found that venture capital investment in the travel industry reached its lowest point in a decade in 2023, with only $2.9 billion invested compared to nearly $9 billion in 2019. However, despite a decrease in the number of deals, they are now larger in size, leading to a projected overall increase in travel VC funding in 2024. Growth areas for investment include tours and experiences, AI & automation, and hospitality employment.
Starting July 1, Airbnb will display the total price before taxes of a stay in California to comply with the state’s new ban on junk fees. This includes host cleaning fees and Airbnb’s service fees. This change will make it easier for guests to see the actual cost of their stay. The short-term rental giant had already rolled out a similar feature nationwide in 2023.
Lastly, there is an increasing trend of corporate travel decision-makers investing in artificial intelligence to solve problems in business travel. A Mastercard survey found that 90% of travel decision-makers plan to invest in AI and machine learning to improve operations and personalize employee travel. AI is seen as a solution to the complexities of corporate travel, with companies like FCM Travel reshaping their operations to offer more personalized services to clients.
